Ferry rides could offer an alternative in commuting
Tony Elliott-Cannon’s business plan to take thousands of people across the sea not only hits an untapped market, it’s headed into unchartered waters.
At least from Marina del Rey, which for the first time is offering ferry service to Catalina, an island paradise 38 miles from LA.
Now in its fifth week of operation, the Grey Lady II brings up to 149 people to Catalina four times a day. Elliott-Cannon, along with a five investors, formed Sea Planes Inc. in 1999 with the hope of one day tapping into the Los Angeles market’s 9.5 million people.
It has taken more than four years and $4 million to offer the service, which until now was only available in ports like San Pedro and Long Beach. “(Marina del Rey) is the nearest port to the largest population,” Elliott-Cannon said. “This is the slam dunk operation.”
Although it took a lot of patience to get approvals and plenty of political maneuvering with competitors, marina operators and politicians, Elliott-Cannon knows his efforts will some day pay off.
At $52 for an adult round-trip ticket, Elliott- Cannon, president and CEO of Sea Planes, said an average of 46 people have to ride the ferry each run in order to break even with the operation’s costs. He expects the company will reach a positive cash flow in a few months.
All of the ferry trips were sold out this holiday weekend. And as people learn that there’s a more convenient hub to travel from, the operation is expected to get more popular.
“We are building our reputation slowly and we have good people behind us,” Elliott- Cannon said. “You can lose it in a heartbeat if you screw it up.”
But Elliott-Cannon, who has 20 years of experience in the cruise shipping business, has no intention of screwing it up.
During Elliott-Cannon’s research, it became clear that the Catalina Island market had been static for the last 20 years because the two main tour operators in the South Bay could only handle so much business, he said. And when one of the Long Beach operators closed in March 2001, Elliott-Cannon knew the opportunity was ripe.
“The locations of San Pedro and Long Beach ferry operators are a real deterrent to most people except maybe Orange County residents,” he said. “The thought of driving down the 405 freeway then onto the heavy truck infested 710 to Long Beach is abhorrent to most people.
“Far better to leave the 405 onto the 90 to the lovely Marina del Rey,” he added. “However, our intent is not to merely attract customers away from existing operations but more to attract a whole new untapped market and in doing this we will stimulate the market for the benefit of all.”
For the past three and a half years, Elliott-Cannon had to convince the California Public Utilities Commission and the United States Coast Guard of that.
The California ferry industry is permitted, regulated and controlled by the PUC. Sea Planes was able to prove there was a “public need and necessity” to the government, despite that there were several objections from two other ferry operators.
The Los Angeles County Beaches & Harbors department has for many years tried in vain to encourage a ferry operator to establish any scheduled service, but the industry is heavily political, particularly in Marina del Rey where boaters are protective of their turf. “(The marina) was built up as a yachting place, not a ferry place and they wanted to make sure the waterfront was kept accessible,” Elliot-Cannon said.
But with the backing of the Avalon Chamber of Commerce and the island’s politicians, Sea Planes was able to get enough support. Last month, Avalon’s Mayor, Ralph Morrow, cut the ribbon during an opening ceremony and the service to Catalina Island was launched.
Doug Lord, owner of Catalina Ocean Rafting, said a ferry from Los Angeles will boost Avalon’s economy and hopefully help local businesses.
“Marina del Rey was a ripe market,” he said. “It makes it a lot more convenient for people in the valley and in Santa Monica to get here.”
Lord, who operates whale watching tours from January through March, and a host of trips during the summer, hopes the new ferry will help Catalina business in the slow winter months.
Elliott-Cannon said he plans to market with area chambers of commerce, large hotels and area merchants to drum up business. He said a lot of companies, particularly in the entertainment industry, have booked trips to take clients to Catalina.
The new ferry service also props up the faltering business community in the marina, particularly Fisherman’s Village, a string of shops and restaurants along Fiji Way where the boat picks up its passengers, Elliott-Cannon said.
He prides his staff of 40 crew members on the personalized service they offer guests while they kick back on a comfortable and smooth ride to Catalina. There is two indoor seating areas, an outside deck and a large cargo area that can accommodate guests’ dive equipment, bicycles, kayaks and luggage.
On one recent Saturday evening, the boat’s upper deck was jammed packed with people of all ages enjoying the sunset and the school of dolphins swimming next to the boat.
As the wind picked up, the sea got rough but kids and adults handled it well as they laughed while getting sprayed with water and trying to maintain their balance with their newly formed sea legs. Meanwhile, a group of teenaged girls sitting on the upper deck set the mood by playing music of all genres from their boom box. A couple with their three children sat next to the teenagers while singing along to tunes from the Beatles, Led Zeppelin, Bob Marley and Frank Sinatra, to name a few.
Eagle Rock residents Stuart Martin and Kim Huynh took the ferry to Catalina for a day trip. They departed Marina del Rey at 7:15 a.m. and returned on the 5:35 p.m. run. The couple celebrated Huynk’s birthday with champagne that they brought on the boat.
“It was a 30-minute drive to Marina del Rey, it’s so nice to have this,” Martin said.
The high speed catamaran, which for the past seven years has operated daily between Hyannis, Mass. and Nantucket Island, also has a small food operation. Elliott- Cannon hopes to get a liquor license in the next couple of weeks to sell beer and wine.
The name “Grey Lady” is derived from Nantucket, which is historically known as the “Grey Lady” because the island has grey pebble beaches and is often enshrined in grey mist. The Grey Lady II was sailed from Massachusetts through the Panama Canal to Los Angeles.
Once firmly established, Sea Planes Inc. will be creating coastal ferry routes between Santa Barbara to San Diego, with a stop in Marina del Rey. Elliott-Cannon, who is based in Santa Barbara, said a ferry ride from Marina del Rey to Santa Barbara will take just over an hour and a half, and will cost $35.
“It could be an easy commute,” he said Friday while sitting in traffic on Highway 101 heading north to Santa Barbara. “As I drive up the coast and constantly look at the ocean, I wonder why isn’t America doing what the rest of the world is doing?”
Originally published in the Santa Monica Daily Press print edition on September 1, 2003. Read the original PDF.